The deal, confirming a report in WWD on Friday, covers production and distribution for Just Cavalli men’s and women’s apparel, shoes and accessories. It runs through the fall-winter 2014 collections and cancels outstanding financial obligations tied to the previous agreement,both parties said Monday. The contract is subject to government and court approval.
The renewal marks a U-turn for Cavalli, who blamed Ittierre for having to call off Just Cavalli’s fall-winter runway show in February, citing delays, substandard production and 20 million euros, or $26.5 million, in unpaid royalties. At the time, Cavalli said he was talking to other potential partners, including Renzo Rosso’s Staff International, and could even take Just Cavalli’s production in-house. Cavalli’s remarks led Ittierre to threaten legal action.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Cavalli said Monday his young line had been suffering from “just a bit of a fever” and “seasonal ills” and would return to the runway with the spring-summer 2010 collections.
“Now [Just Cavalli] is very healthy and very strong,” he said. “It will very much upset those who were hoping for the worse.”
The deal is expected to strengthen Cavalli’s position in negotiations with Clessidra SGR SpA. He is in talks with the private equity firm to sell a 20 percent stake in his namesake fashion company. The designer met representatives from the fund last Tuesday, when they laid out what he described as an “interesting plan.”
In addition, the new pact signals a turning point for Ittierre, which filed for the Italian equivalent of Chapter 11 bankruptcy protection in February after running out of cash. Just Cavalli is the biggest license for Isernia, Molise, Italy-based Ittierre, generating 2007 revenues of about 240 million euros, or $329 million, and is highly profitable. Ittierre’s other licenses include C’N’C Costume National, Galliano, VJC Versace and Versace Sport. Ittierre employs 772 people.
“The agreement with Cavalli confirms Ittierre’s great international value and operational capability,” said Ittierre’s administrators, Andrea Ciccoli, Stanislao Chimenti, and Roberto Spada. “We are very pleased to be able to renew the partnership with a brand of such enormous global renown, great commercial success and development potential as Just Cavalli. In moments like the present, the market needs the positive energy and creativity that the designer and the maison have always been able to represent.”
Sources credited Ittierre’s de facto chief executive officer Ciccoli, a former partner at consultancy firm Bain & Co., with convincing Cavalli that Ittierre was best-placed to build Just Cavalli globally. Just Cavalli generates an estimated 70 percent of revenue in Italy and the rest of Europe. The new deal includes a worldwide marketing and communications plan.
The license extension is the second major achievement for the administrators, who secured a 30 million euro, or $39.7 million, line of credit from five Italian banks at the end of February, allowing Ittierre to restart its engines and continue day-to-day operations.
With Cavalli on board, the administrators are expected to step up efforts to renew agreements with other licensors before addressing Ittierre’s parent company, IT Holding SpA.
IT Holding, which owns the Gianfranco Ferré, Malo and Extè brands, followed its production and licensing unit into administration at the end of February.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast